Antara News·Indonesia·Friday, September 25, 2026 at 04:45 PM

Airlangga urges furniture industry to reduce US export dependence

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Bayu Saputra, Yashinta Difa

The call for market diversification comes as around 60 percent of Indonesia's furniture exports are currently concentrated in the US market.

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto urged Indonesia's furniture industry to diversify its export destinations to mitigate global economic uncertainties and reduce reliance on traditional markets, particularly the United States.

Speaking at the International Furniture and Craft Fair Indonesia (IFFINA)+ 2026 in Jakarta on Friday (September 25), Airlangga emphasized the importance of establishing direct relationships with international buyers to build a more resilient trade network.

"The implementation of IFFINA+ today is important as a means of mitigating risks by expanding markets, building direct relationships with international buyers and reducing export dependence on certain markets," Airlangga said.

The call for market diversification comes as around 60 percent of Indonesia's furniture exports are currently concentrated in the US market.

Despite global trade challenges, Indonesia's furniture industry has maintained a trade surplus since 2021.

In 2025, Indonesia recorded US$2.39 billion in furniture exports and US$1.92 billion in imports, generating a trade surplus of US$473.31 million. The performance ranked Indonesia 25th among global furniture exporters, with a 0.77 percent share of the global market.

Airlangga highlighted Indonesia's potential to increase its global market share by capitalizing on its abundant natural resources.

The country produced 57.46 million cubic meters of roundwood in 2024 and supplies more than 80 percent of the world's rattan.

To compete globally, he said local producers must adapt to changing market preferences, which increasingly prioritize functional, customizable and sustainable products.

However, structural challenges remain. Small and medium-sized industrial enterprises (IKMs) account for 99.79 percent of Indonesia's 4.45 million industrial business units and employ 65.52 percent of the industrial workforce. Many of these businesses continue to face technological constraints and relatively low productivity.

To address these challenges, the government is providing fiscal incentives, including government-borne Article 21 income tax (PPh DTP) for eligible workers, as well as financing through Labor Intensive Industrial Credit. Additional measures include machinery restructuring programs, export promotion support, and strict enforcement of the Sustainable Wood Legality Verification System (SVLK).

Airlangga expressed optimism that events such as IFFINA+ 2026 would help drive direct trade transactions, expand international partnerships, and strengthen the overall competitiveness of Indonesian furniture and craft products in the global market.

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